About this episode

Shawn Plummer exposes the misconceptions surrounding guaranteed interest rates in annuities and explains the difference between real interest and actuarial income formulas.

Have you ever had an insurance agent or a financial planner promise you a contractually guaranteed 10% annual interest rate inside a modern annuity? It sounds completely spectacular—especially compared to a 5% bank CD or a 7% corporate bond fund. But is that 10% return actual, spendable cash, or is it just a fictitious marketing illusion? 🛑💸 In this video, Shawn from The Annuity Expert exposes a massive wave of consumer misinformation regarding the Guaranteed Lifetime Withdrawal Benefit (GLWB) income roll-up rate. Shawn walks through a recent real-world case study involving a wealthy client with a $400,000 bond portfolio. The client was earning a real, spendable 7% yield that he routinely swept out of the account as retirement income. Another insurance agent tried to bait him into an Athene annuity by bragging about a "guaranteed 10% growth rate." Shawn stepped in to save the client from signing a contract he completely misunderstood. As Shawn bluntly explains, a GLWB roll-up rate is not real interest, it is not yield, and it is not tangible cash value. It is a phantom calculation base used strictly by insurance company actuaries to determine the size of your future monthly…

People in this episode

Host: Shawn Plummer

Topics covered

• annuities
• financial planning
• investment yields
• consumer misinformation
• retirement income

Keywords

• annuity
• interest rate
• GLWB
• retirement income
• financial planner
• investment yield
• consumer scams

Mentioned in this episode

Organizations: Athene, The Annuity Expert

Places: United States

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